Case Digest: The “DC MERWESTONE” - Collateral lies do not fall within the fraudulent claims rule
/A new decision from the Supreme Court regarding lies in a marine insurance case.
Apparently, this is the first time that the House of Lords or the Supreme Court has had the opportunity to resolve the question whether the fraudulent claims rule applies to justified claims supported by collateral lies.
Their Lordships (Mance, Clarke, Sumption, Hughes and Toulson with Mance dissenting) have reached the conclusion that the rule does not apply to such claims.